BAF surcharge on base freight when bunker price moves above a trigger - liner trades and contract affreightments.
Formula
$$ \text{BAF} = \max(0, P_\text{current} - P_\text{trigger}) \cdot F $$
Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| $P_\text{current}, P_\text{trigger}$ | Current and trigger bunker prices | USD/t | CP / invoice |
| $F$ | Voyage fuel consumption | t | BDN |
Sources
- BIMCO - BUNKER CLAUSE 2022.